Beruflich Dokumente
Kultur Dokumente
Submitted to:
Saleha Haroon
Prepared by:
: Shahnaz Akhtar
Class: MBA 3B
Date: 24 Nov 09
Assignment Form
MBA 3B
EXECUTIVE SUMMARY
In the first few sessions some traditional approaches of Human Resource Management
are given to have a background and view to understand that how HRM is important and
how it is strategic business contributes in the overall strategies of an organization. This
highlights the main functions and Human Resource systems which directly influence the
organization structure, employee behaviors and performance, development of human
capital and also on the cost effectiveness from the traditional ways to recruit, manage and
control the behaviors of the employees to give a satisfactory and continuously improving
performance to achieve the organization goals. After this background it includes the
dynamics and reasons of innovations in business environment that how business
environment is changing globally and how Human Resource implement its techniques to
enable the organization to sustain in new markets globally. Coming on the main point of
that what are competing demands of Human Resource Management and what challenges
HRM will be facing in the future, and what are the ways to compete in new markets and
how HRM enables a HR professional to meet those competing demands strategically.
INTRODUCTION
Human Resource Management basically is the replacement of Personnel Management
which was previously in practice to manage and maintain the employees working within
the organization to achieve its objectives.
HRM is mainly concerned with recruitment and selection of employees, their training and
development, record keeping, managing behaviors, manage workplace, being a change
change management and utilization and compensation of skills and human capital
according to different job requirements keeping the company (Legal entity) or
organization goals and objectives and business (ROI=Return on investment) or benefits
in sight.
This definition shows the direct influence of Human Resource Management in overall
strategy formulation and its implementation and it plays its role as strategic business
contributor, whereas corporate strategy is to create sustainable competitive advantage. It
is necessary to have a review of HR architecture describing the relationship between HR
functions, HR system and Employee performance. This will clearly show the importance
of HR professionals in strategies formulation and implementation.
•HR Functions: - “What we think, know, or believe in is, in the end, of little
consequence. The only consequence is…. What we do.” (Haines, 1995)
HR functions like selection, recruitment, training, development etc have direct
influence on organization structure and it is only possible to select, understand
and implement right strategies on right time and right place if the organization
structure is working as per organization business needs. Further HR functions are
divided in two main parts;
Employee Performance
Employee performance and his awareness about his duties and organizational goals is the
key factor of any organizations business profit as well as loss. HRM as a strategic
business contributor is always responsible to make strategies to calculate the performance
of employees according to business objectives and their job specification and
requirements, and also to improve their performance to increase the quality and profits of
a business. There are some key strategies which always being implemented by Human
Resource personnel to improve and calculate the performance of employees as given
below;
1.Reminding the organization’s goals and objectives to the employees
2.Explaining employee importance of their role as a part to achieve organization
goals.
3.Involving them in strategies formulations and their improvements
4.Ensuring and stretching their job goals to improve the performance consistently.
5.Sharing new goals and future action plans to employees to make their minds for
their achievement.
6.Explaining them organization expectations from them as individual and as team.
7.Explaining them performance measurement criteria which will be reviewed to see
their performance.
8.Giving them examples of best performance by awarding and motivating on best
performance.
9.Giving them opportunities to respond to the evaluations.
10.Being proactive rather than being reactive.
11.Knowing your own strengths and weaknesses being a leader.
12.Criticism on bad performance.
13.Arranging meetings to discuss their experiences, strategies to motivate them and to
improve coordination.
14.Giving them opportunity to set their goals and objectives because they know their
work better than all others.
Cost Effectiveness
Human Resource management is basically concerned to the Human capital of the
organization and it thinks the human as the basic asset of the organization. Every
organization emphasize on cost effectiveness because it has a direct effect on the profit
and loss in the organization business. Human Resource Management also works for the
cost reduction but in an organization some costs are fixed and may not be reduced like
purchase of resources, process costs and utilities but Human Resource Management is not
directly concerned with these costs but it has an influence on their strategies
formulations. Human Resource Management is mainly concerned to manage, maintain
and control the following costs;
These all costs are the key costs of human resource department to manage, maintain and
control the behaviors of employees and to develop human capital of an irganization.
These competing demands also changed with the passage of time and as per requirements
of new markets, continuous competition in business and challenging future trends.
“Its been rather easy for us to decide where we wanted to go. The hard part is to get the
organization to act on the new priorities.” (Floyd and Woolridge, 1992)
HRM can be said as an agency working for the organization which benefits organization
by using its techniques and activities to achieve business from full utilization of human
skills. But as for as HRM is concerned with people as Human Resource author Dave
Ulrich said that “the HR activities appear to be- and often are- disconnected from the
real work of the organization”. This meant that HR activities are to make the
expectations and to make the employees enable to meet these expectations but as a
proactive part of organization and should also be empathically drive its employees to
achieve their goals. Human Resource as a strategic business contributor acts like a
navigator, capability builder, internal consultant, business partner and also as relationship
manager of the organization to motivate the employees towards achievement of business
goals and managing their behaviors as per organization expectations from the employees
as an individual as well as in team. HRM itself must work to achieve some competencies
or competing demands. These competencies can be divided into three main levels as
given below;
1. Core Competencies
• Personal Attributes: - These are the competencies from a single employee which
focuses to improve skills and motivate him for organization goals and make him
able to achieve future trends as well as to improve his temperament to sustain in
dynamic business environment.
HR professionals are the key personnel of the organization to meet the competing
demands of the organization to manage and change behavior of its human capital and to
attain the above competencies which enables the organization to compete and sustain its
position in current as well as in new markets. Human Resource professionals meet these
competencies keeping following factors in sight which may be said as the standards or
control limits for a Human Resource professionals as well as for each and every
employee of the organization;
The world markets are facing many other challenges also and future Human Resource
professionals also have to face and make strategies for many global changes in the
business environments like;
HR professionals use some techniques to calculate and examine their own performance as
well which shows their working output and as well as make them able to analyze and
enhance the gaps in the organization strategies, individual and team performances and
also possible changes in their goals and expectations. These also provide vacuum to
increase the performance of the employees and meet the competing demands made on
them.
“Unless you know how you are doing as you move along, you will never know when
you’re done, or if you have succeeded.” (Crosby, 1979)
Human resource techniques to calculate these competing demands used to analyze the
competencies and improve them as per need of organization objectives are mainly
dependant on competencies drivers.
Human Resource scorecard is one of the basic tools that many organizations have
implemented and found helpful in working with Human resource strategies. This HR
scorecard was introduced by Robert Kaplan, a Harvard business school professor in one
of his article Harvard business review and David Norton in 1992. Kaplan and Norton’s
scorecard looks on the competencies, its drivers and then strategy implementation. This
scorecard is a protocol developed for CEOs and top level managers to incorporate
financial and nonfinancial measures in organization action plans with measureable results
of business strategy. This scorecard emphasizes on four main perspectives;
i)Financial Perspective: - This perspectives measures that what is my strategy for
the satisfaction of stakeholders?
ii)Customer Perspective: - What does the customer want? To achieve my goals, how
must I look to my customer needs?
iii)Internal Perspective: - How will I satisfy my customers? What are the critical
dimensions of my approach to business processes and how do I re-engineer
them, focusing them to be consistent with my customer objectives?
iv)Organization Learning: - To achieve my vision, how must my organization have
learnt and improved?
Within each category there are goals and measures and the competencies required to
achieve them. These competencies are graphically distributed for a better understanding
of each perspective and their measurable goals as in Appendix 1.
“What we are looking at is balancing outcomes, like financial success and customer
success, with drivers. The drivers are internal processes, the people, the organization,
the learning, and the growth profile.” ( Norton explained, 1992)
CONCLUSION
7.0 REFERENCES
•Hussey, D.E. (1996): Business Driven Human Resource Management, New York:
John Wiley & Sons.
•Ulrich, D. (1997): Human Resource Champions: The Next Agenda for Adding Value
and Delivering Results,
•Wright, P.M. and Gardner, T.M. (2000): Theoretical and Empirical Challenges in
Studying the HRM Practice